The highest-profit margin businesses you know of?

[rekid]

Could anyone be willing to share any or as many high-profit margin businesses or industries you know of?

I know anything delivered digitally could be considered such but what some others that you've come across where people have made killings...

[BusinessAdviser]

What would you consider to be a "high profit margin business?" Looking at ROI? Price/COGS?

[rekid]

Price/COGS...thanks

[Pnickle]

Search engines

[BusinessAdviser]

Off the top of my head, pizza is a big one.

[rekid]

thanks jmenq2, what are some more offline examples...

[Ptime]

Another offline business that might have high profit margins is a sign company (banners, signs, and such). I saw one for sale and the description noted something like a 900% markup. Cashflow was very good for this specific one, but I don't know if that is standard though. He had built relationships with local businesses such as Realtors.

[BusinessAdviser]

Here's the long and short of it:

Competition reduces profit margins. If you want to realize very large margins, you need to find a business with little to no competition. Where are those you ask? In niches. That's where we've been able to find profit margins of about 125% wholesaling and more than 250% retailing. AND that's taking into account all fixed and variable costs, not just cost of goods sold, so it's actually our ROI, not just our profit margin. As I always say, it's better to provide a lot to a few people than to provide a little to a lot of people, if that makes sense.

[KKoher]

Body jewelry has a huge profit margin, I'm not sure if thats the type of market you are looking into, but for example an acrylic plug cost that cost around .25 can be sold retail anwhere from $5 to $10, it depends on your market and competetors. A plain belly button ring will wholesale at .28 and can be sold for $10, and a fancy or dangly one will wholesale around $1.25 and can retail for $15-$20....

[pboychuk]

hows about food a theme parks haha

[moose3511]

To some people $100 is alot and to kids having a 10 bill is alot. Some people work for 15/hr and some work for 55/hr. Labor is not profit so what is. If you are working by the hour that is not profit. If you spend $1000 on a piece of land and sell it for $1000000 that is a pretty good profit. So where are we going with this? $1000000 is quite a bit to me but to Trump that is chump change.

[BusinessAdviser]

To some people $100 is alot and to kids having a 10 bill is alot. Some people work for 15/hr and some work for 55/hr. Labor is not profit so what is. If you are working by the hour that is not profit. If you spend $1000 on a piece of land and sell it for $1000000 that is a pretty good profit. So where are we going with this? $1000000 is quite a bit to me but to Trump that is chump change.

Uhhhhhhhhh... I'm kind of speachless.

[Aletheides]

Pimpin........

[DPayne]

A starbucks cup of coffee has got to be up there.

[biz123]

A starbucks cup of coffee has got to be up there.

For every dollar earned, starbucks makes less than 10 cents.